A key measure of consumer prices slowed somewhat in October, another hopeful sign that inflation pressures could be moderating.
The Personal Consumption Expenditures price index, or PCE, rose 6% in October compared to a year earlier, the Commerce Department reported Thursday. That’s down from the upwardly revised 6.3% annual increase reported for September.
PCE is the Federal Reserve’s preferred inflation gauge since it gives a more complete picture of consumer prices.
Prices rose by 0.3% in October compared to September, the same monthly increase as in each of the previous two months.
Stripping out volatile food and energy, core PCE rose 5% over the last 12 months and 0.2% month on month. That compares to September’s upwardly revised 5.2% annual increase and a month-on-month jump of 0.5%.
The 12-month gain in core PCE matched…